“With
the implementation of the so-called payment guidelines, it will basically
create the conduits for implementation of solutions similar to JCUES. The BOJ's
assertions, when they had not endorsed it last year, was that pretty much we had
to await the implementation of these guidelines”
Comments by Heston
Hutton Managing Director of JCCUL subsidiary, Centralized Strategic Services on
Wednesday, February 6th, 2013, The Jamaica Observer
Looks
like the JCCUL (Jamaica Cooperative Credit Union League) application to launch
their new e-payment services aptly titled JCUES (Jamaica Credit Union e-Payment
Services) may be getting the Green Light in April 2013 as noted in “E-money
set to roll out in April”, published Wednesday, February
06, 2013, The
Jamaica Observer.
This
after the BOJ (Bank of Jamaica) had effectively put the kibosh on their plans
to make it possible to do Financial Transaction with Remittance money from
abroad using your Mobile phone or smartphone. The delay was mainly due to
concerns over Money laundering and they fact that the new venture was
unregulated as explained in my blog
article entitled “JCCUL
JCUES is put on hold by the BOJ - ePayment setback means Mozido has been
Bewitched”.
Now
regulations are in place, with requisite License and Fees geared up for a final
consultation by April 2013, some new yet basic lingo in this new Financial
Sector is bound to confuse many.
To
wit, I’ve got you covered:
1. Mobile
Banking - implies transactions done over the Internetvia either a smartphone, Blackberry
of a Computer, be it a Laptop or computer. For safer Mobile Banking, read my
handy guidelines in my Geezam
Blog
article entitled “ScotiaBank’s
VISA Debit Card – Jamaica’s Online E-Commerce Renaissance”
and “How
to use Scotia VISA Debit Card Online”
2. Electronic
Retail Payment Services – this is the name given to the Bank, Credit Unions or
other entities that’ provider these e-payment or Mobile Money Services.
3. Retail
Payment Service Providers – this is the name given to the companies,
Wholesalers and Retailers, Supermarkets, small Businesses, etc. who’ve signed
up to accept Transactions via Mobile Money. Effectively equivalent to ownership
of a POS (Point of Sale) Rental for NCB (National Commercial Bank) or Scotia
Bank.
4. Agents
– representatives of the Electronic Retail Payment Services who have to have
certification in Accounting and money management and be license to act on
behalf of the Electronic Retail Payment Services. Basically akin to Insurance
Agents
Distilled
from the legalese of the BOJ and armed with the new terminology above, their
Regulations are as thus:
1. All
entities intending to offer Electronic Retail Payment Services are subject to
the guidelines
2. All
entities intending to offer Electronic Retail Payment Services are required to
apply to the central bank for authorisation before starting operations.
3. All
entities intending to offer Electronic Retail Payment Services are required to
maintain sufficient capital to support a minimum net worth of US$100,000 or the
equivalent in Jamaican dollars, subject to any changes that the bank shall make
from time to time, according to the BOJ.
4. All
Retail Payment Service Providers are required to pay US$5,000 ($461,000)
authorisation fees for the initial application for an electronic retail payment
services License
5. All
Retail Payment Service Providers are required to pay US$4,500 for renewals for
their electronic retail payment services License.
6. Agents
of the Electronic Retail Payment Services that franchise their services to
Retail payment service providers are required to pay US$200 for both initial
applications and renewal.
Had
it gone through, JCCUL mobile product JCUES, which is powered by the technology
of partner Mozido Jamaica LLC curiously named the Genius Wallet as explained in
my blog
article entitled “Mozido
Jamaica Limited and Mobile Payments - Plants and Zombies say the Gods must be
Crazy”, would have had a virtual monopoly in a Mobile Payment
Industry in which they’d be the ONLY players.
Now
some ten (10) month later, the BOJ, very much impressed with this technology
that’ll make every phone, be it a feature phone or smartphone into a money-machine,
has decided it’s too lucrative to be the preserve of just the JCCUL and its 1
million strong membership. It’s gotta be something every Financial Institution
can get into, once properly regulated.
The
ability to do transactions via either a NFC (Near Field Communications) Sticker
or a NCF built into the smartphone as described in my blog
article entitled “NFC
now supports Device-to-device Data Transfers – Swapping Music in the Castle of
My Skin” is too important a freedom to be left unregulated.
Or simply via Text messaging identified by the customer SIM (Subscriber
Identification Module) to access spendable funds!
Either
way, is something of National Interest to the Central Bank, as Jamaica has a
serious problem of the Unbanked as described in “Jamaica
Counting On its Unbanked”, published Friday, September 30,
2011, The Jamaica
Observer and more importantly, Money Laundering and The
Lotto Scam. This being as many Jamaicans still do not put their earning in into
a Bank Account, thereby making it harder not only tax people but also to gauge
the earnings of Jamaicans as well as police Money Laundering.
Eventually
the GOJ may even phase out Remittance Agencies, banning them from paying out
Remittance cash unless the persons is willing to deposit the money into a Bank
Account as a means of making Remittance spending traceable and thereby Taxable.
On
November 20th 2012 at the Terra Nova All-Suite Hotel,
Waterloo Road, Kingston CEO of GraceKennedy,
Don Wehby made a presentation on his company at the Stock and Securities
Limited Investor Forum as noted in “GraceKennedy
responsible for half of Jamaica's remittances, says Wehby,”
published Sunday November 25, 2012, The
Jamaica Gleaner.
There
he revealed how well the exports to Africa, specifically Ghana, have been going
since September 2012, seemingly poised for explosive growth once they expand to
other Countries as noted in “Grace
steps good on African path”, published Friday, September 07,
2012, BY CAMILO
THAME Business Co-ordinator, The Jamaica Observer.
He
revealed that his company, which represents Western Union and has a 75/25 split
of the Remittances Services with Western Union and handles approximately 50% of
the US$2.2 billion dollars’ worth Remittances coming into Jamaica in 2011, representing
some US$1.1 Billion dollars.
Aside
from giving insight into GraceKennedy
push into investing in Africa as reported in“GraceKennedy
looks to Africa ...”,Published Monday | February 13, 2012, The Jamaica Gleaner,
he also hinted at the possibility of GraceKennedy
going into the Mobile Money Business, quote: “The question that we have to ask
ourselves is, how can we retain as much as possible, and I submit to you that
if First Global Bank and Western Union work together with a store card and
mobile wallet, then that is the answer”.
Thus
financial entities i.e. Bank, Investment Institutions, such as Grace Kennedy
and First Global Bank interested in Mobile Money may pick up the slack here by
partnering with Remittance companies in much the same way the JCCUL has
partnered with Mozido Jamaica Limited and offer the Mobile Money product. This
especially as Remittances since April 2013 have been rebounding as reported in “Remittances
pick up as recession rebound continues”, published Monday |
April 9, 2012, The
Jamaica Gleaner.
This’ll
make it possible for people receiving Remittances to spend their cash in a
traceable form via their Mobile phones. The added Security and convenience’ll
make this product a sure winner, the main reason why JCCUL had partnered with
Mozido Jamaica Limited in the first place as noted in the article “Battle
of the digital wallets” The Jamaica Gleaner.
The
Lotto Scam mainly involves “scammers” taking advantage of older people and
having them send money via Remittance Services, claiming it to be a
prerequisite to winning a very large cash prize. With the recent spate of
arrests related to the Lotto Scam that the Jamaican Police Claim has severely
disrupted the Lotto Scam as noted in “'We've
greatly disrupted the scam'”, published Thursday January 3,
2013, The Jamaica Gleaner,
Mobile Money’s basically being given the “all Clear” by the BOJ for a clean
take-off .
As
it mainly targets the very Elderly in the US of A, the GOJ’s via the BOJ taking
the initiative to properly police this new conduit of Foreign Exchange into
Jamaica, as already Jamaica’s seen as being lax on scammers as noted in “Concerns
over US documentary on lotto scam”, published Saturday February
2, 2013, The Jamaica
Gleaner and “American
journalist Dan Rather visits Jamaica for lottery scam documentary”
Saturday February 2, 2013 11:49 am, The
Jamaica Gleaner.
This
as regulating Mobile Money has several potential advantages or side-effects,
depending on how you look at it:
1. The
ability to track the Foreign Exchange that come into Jamaica down to who’s spending
their money and on what
2. Effectively
Police Money Laundering from Drug Traffickersand the Lotto Scam Jamaica more
effectively
3. Get
more Jamaicans into the formal Banking System by making Banking and Spending
their Foreign Exchange seamless and easy
4. The
gradual phased introduction of a Cashless Society, of which Mobile Money is a
Start.
Already
strides are being silently made by some Banks and Public Sector entities in
Jamaica:
1. Internet
and Mobile Internet Banking options that are now slowly being enable with
Cross-Banking Transfers. This is has been pioneered since September 2012 by CIBC
First Caribbean Jamaica and First Global as described in my blog
article entitled “CIBC
FirstCaribbean Jamaica and First Global introduce Cross-Network Banking - The
Avengers for the idea of a Cashless Society and Banking Anywhere”.
2. JNBS
(Jamaica National Building Society) has since November 2012 eliminated the need
to have a Bank Account Book and allowing you to conduct Business using your
Debit Card only as noted in my blog
article entitled “JNBS
Introduces Swipe and Go, eliminating Bank Books - Secret of Wings for a
Cashless Society in Jamaica”.
3. JUTC
(Jamaica Urban Transport Corporation) has plans to introduce the RFID (Radio
Frequency Identification) and NFC enabled Smarter Card system in April of 2013
to replace the Smart Card system as stated in my blog
article entitled ”JUTC
to debut RFID & NFC Readable SmarterCard Cashless Bus Ticket System in
April 2013 - The Last Stand for a Cashless Society to empower the Multi-Modal
Concept”. Effectively making traveling on their Buses a
Cashless affair!
Thus
it’s no coincidence that to me that the JUTC system’s set to come on stream in April
2013 and may in fact incorporate A Universal RFID and NFC based Mobile money
Payment Platform. There is now a STRONG developing trend towards Mobile
Computing on smartphones and Tablets as noted in my blog
article entitled “Blackberry
popularity wanes as Jamaicans go smartphones - Android and Apple's Smartphone
Revolution” and my Geezam
Blog
article entitled “Apple
iPhone boosts Jamaican smartphone usage as BB goes Chapter 11 Bankruptcy”.
Throw
in the possibility of a New Data Telecom Provider coming soon with the recent
application of the OUR (Office of Utility Regulation) for a new Area Code as
stated in my blog
article entitled “OUR
applies for new Area Code for Jamaica - Competition in Telecoms in the coming
Hunger Game Catching Fire of Mobile Computing” and we have
brewing Data Storm that’s sure to attract Telecom Provider to set up Shop in
Jamaica.
JCCUL
JUCUES, it seems by April 2013, will be the Man of Steel (2013)
as GraceKennedy
joins in The
Last Stand (2013) for a Cashless Society.
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